Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?

Posted by Mastura Zaini-Roberts on Tuesday, April 10th, 2012 at 10:55am.

"Where have all the homes gone?!" In the Las Vegas real estate market it's like the clock has suddenly been turned back to the year 2004. Within hours there are multiple offers on everything listed under $250k, often sight unseen, and most accepted contracts are going above list price. New home builders are warning real estate agents about imminent price increases.

At the beginning of November there were approximately 11,500 single family homes actively on the market that were not yet under contract. Today, less than 6 months later, there are only 5,074 active single family listings in the Las Vegas MLS. That's about a six week supply at the current rate of absorption.

This is a direct result of Assembly Bill 284, which effectively stopped the non judicial foreclosure process in Nevada. Before AB 284 became law, lenders were filing around 5,000 Notices of Default per month. Now that figure is down to about 300 a month. Actual foreclosures are down to about 800 per month, and even that figure is dwindling rapidly. REO teams are downsizing staff and services, as there doesn't seem to be an end to the drought any time in the near future.

So where is the "shadow inventory" we keep seeing in the news? Since Nevada lien holders can no longer foreclose on properties non-judically, they have gotten much more aggressive about encouraging and approving short sales. Many owner occupants with true hardships that don't qualify for loan modifications are receiving cash incentives from $3k up to a whopping $30k for cooperating in a short sale.

Lienholders are also modifying many borderline loans, often unsolicited. I had a call from one of my clients last week. He had been trying to refinance his home through a new lender. (He was just barely upside down and had excellent credit.) Out of nowhere, he got a call from his existing mortgage lender, Bank of America, offering an interest rate reduction that saved him more than the refinance would have, at no cost, and without extending the life of the loan!

So in the foreseeable future, the "shadow inventory" in Nevada is a myth. And with the Las Vegas economy recovering, by the time AB 284 expires, many Nevada homeowners will be able to achieve a work out solution with their lienholders.

For more news on Nevada's improving economic situation and rapidly shrinking inventory, check out this week's recent news articles:

Single Family Homes Down to Six Week Supply
Tide Changing for Lake Las Vegas Economy

Mastura Roberts
(702) 919-5400
offers@greatlasvegashomes.com

Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052

With over 30 years of experience helping families call Las Vegas "home!"



Related Blog Posts

Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?

"Where have all the homes gone?!" In the Las Vegas real estate market it's like the clock has suddenly been turned back to the year 2004. Within hours there are multiple offers on everything listed under $250k, often sight unseen, and most accepted contracts are going above list price. New home builders are warning re...

Is There Really a Shadow Inventory?

Is there really a shadow inventory in the Las Vegas real estate market? If so, when will these properties be released to the market? What will happen to prices when/if it happens? As real estate agents, these are questions we are asked almost every day, and a number of buyers have stated they are waiting until prices...

5 TIPS TO CHOOSING THE RIGHT HOME INSURANCE

There are so many home insurance companies out there that choosing the right one can be a challenge for most people. That’s because most of them offer almost the same services, but differ on details such as prices and the level of coverage. To help you out, here are 5 tips to choosing the right home insuranc...

THE LAS VEGAS VALLEY HAS MANY AREAS WHICH APPEAL TO DIFFERENT INTERESTS

Now that you have seen the “Strip,” you may wonder if Las Vegas would be a great place to live.  As you start your research, know that the individual tax picture here is one of the lowest of anywhere in the U.S. You have probably seen articles about our great climate with more than 330 sunshine days a...

Take Our Favorite Neighborhood Poll!

We are often asked what are the most popular neighborhoods in Las Vegas or Henderson. Let's find out and ask the residents! Choose your favorite neighborhood from the list below and cast your vote for the best community in Las Vegas. If you don't see your favorite listed, feel free to post in the comment section below....

2 Responses to "Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?"

Zane wrote: Excellent site you've got here.. It's hard to find quality writing like yours nowadays. I truly appreciate people like you! Take care!!

Posted on Friday, April 13th, 2012 at 2:06am.

Las Vegas is a Seller's Market Again! - justsold's Blog wrote: [...]Links

Las Vegas Shadow Inventory - Fact or Fiction
Is Judicial Foreclosure Coming to Las[...]

Posted on Friday, April 20th, 2012 at 5:11pm.

Leave a Comment

Have a Question?

Contact Us

Follow Us